Blair to calm immigration fears with benefit cuts

Tony Blair will today seek to allay public concerns about an influx of migrants from eastern Europe by announcing new restrictions on council housing and benefits for those coming to Britain.

The Prime Minister will acknowledge that there are genuine concerns that the welfare system will be abused when the EU nearly doubles in size on May 1, opening the way for thousands of people from eight eastern European countries to seek work in the UK.

In a speech to business leaders in London today, Mr Blair will argue that the British public will accept controlled immigration provided they are shown the benefits and reassured that the system is not being abused.

But he will acknowledge that concerns over immigration abuses cannot simply be dismissed as racism.

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"Instead, we will tighten the immigration system as necessary and deal with the abuses so that public support for a controlled and selective migration which benefits Britain is maintained."

He will announce that John Prescott, the Deputy Prime Minister, will publish new regulations disbarring "economically inactive" migrants from European Economic Area countries from qualifying for social housing.

Those countries include not only the eight joining on May 1 - including Poland, Hungary, Lithuania and Latvia - but others waiting in the wings, such as Romania and Bulgaria.

It will mean that those coming to Britain will have to support themselves from their own funds or by working.

If they do not have jobs, they will not be be eligible for social housing. Local authorities will not be under a duty to house them, nor will they be able to claim housing benefit.

Mr Blair's decision to make a speech on immigration will be seen as an acknowledgement that it is now among the top concerns of voters, particularly after the recent fiasco over lax controls on migrants from eastern Europe that led to the resignation of Beverley Hughes, the immigration minister.

The Prime Minister will tackle his critics, saying: "Those who say migration is out of control, or that the UK is taking more people than other countries are simply wrong." Mr Blair will try to use facts and figures to outflank his opponents, saying he understands people's fears, but pointing out that they are misplaced.

He is expected to cite a recent opinion poll showing that most people thought that the ethnic minority population was 23 per cent when the true figure was eight per cent.

Downing Street said the Prime Minister would re-assure the public that he would tighten the system where necessary.

"The Prime Minister believes that the benefits migration bring to the UK have never been greater, but he does recognise that concern over migration has risen in the UK as more people can travel."